July 16, 2019
In July 2018, the Centers for Medicare and Medicaid Services (CMS) finalized a new payment model to overhaul the current methodology for classifying patients under the skilled nursing facility (SNF) prospective payment system. Replacing the Resource Utilization Group-IV (RUG-IV) patient classification system, the newly approved Patient Driven Payment Model (PDPM) will take effect on October 1, 2019. This new model classifies patients into payment groups based on specific, clinically significant factors rather than volume-based services.
There is a hard transition between SNF payment models. All RUG-IV payments will end on September 30, 2019, and all PDPM payments will begin on October 1, 2019.